Agnello, Luca; Castro, Vitor; Tovar Jalles, João; … - In: Economics Letters 124 (2014) 2, pp. 231-235
Using a panel of 17 countries for 1978–2009, we find that tax-driven consolidations increase unemployment by 0.25 percentage points. Labour market flexibility mitigates this: a one-point rise in the flexibility index reduces youth (long-term) unemployment by 0.6–0.7 (1.8–2.2) percentage...